The long and short of real estate investing is buy low, sell high. Or conversely, whatever goes up must come down, or does it? In volatile realty markets there are...
Lessons Real Estate Investors Learned By Making Mistakes
The long and short of real estate investing is buy low, sell high. Or conversely, whatever goes up must come down, or does it? In volatile realty markets there are many risks such as investing in commercial developments or many other non rental, non healthcare facilities. There are a hundred ways to split it but basically if you have a solid perspective of a “localized investment” you are probably on the right track. However seen below are several seasoned investors who paid the price made the mistakes and learned from it.
Property valuations (post 2008) give investors a snapshot of what is happening in the moment of purchase, but what about the valuation after flipping? Added costs during a residential rehab or partial construction can add up. We personally know many many investors that have had to wade through the zoning and rehabbing laws just to get a property ready for rehab! Look at the stories of the investors below, if you know what you are doing and have covered yourself with a “wide margin of error” there are some lucrative prospects still out there in almost every market.
Whether it’s a price pitfall, being burned by your partners or incorrectly evaluating the true value of a property, there are many possible real estate investing failures you could face. What matters the most is how you come back from them. Here are several valuable lessons to learn from your professional setbacks, according to 12 members of Forbes Real Estate Council.
Business is easy; people make it difficult. Real estate is not a one night stand, but rather a marriage. It takes five, 10 or 15 years to get to where you need to be. So really make sure that you partner with individuals where you have mutual respect and equal bigger picture thoughts. Long-term thinking and delayed gratification will definitely be the key to your success. – Engelo Rumora, List’n Sell Realty
When we launched the first crowdfunded real estate deal, it failed before it succeeded. We spent a year getting the offering cleared by the SEC, while creating the web platform. When we opened the offering for investment, no one came. We spent the next four months getting people to pay attention. Now, after rolling the snowball for five years, the work from the initial years is paying dividends. – Ben Miller, Fundrise
When growing a business, it can become necessary to make quick decisions about potential business partners based solely on a resume and recommendation from a trusted source. The chances of this person being the wrong partner are high. Spend the time to truly understand the motivations, life goals and background prior to on-boarding an individual that you’ll trust with your business operations. – Abhi Golhar, Summit & Crowne For the compete story visit the investor and finance website forbes.com
Image courtesy 12_valuable_lessons_real_estate_pros_learned_from_their_own_mistakes-1200×1015.jpg?width=640&height=434 (forbes.com)